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NTPC Green Energy IPO: 7 things to know about before today's launch
NTPC Green Energy, the renewable energy wing of the state-owned power company NTPC Limited plans to raise ₹10,000 crore through an IPO
NTPC Green Energy, the renewable energy wing of the state-owned power company NTPC Limited plans to raise ₹10,000 crore through an initial public offering (IPO) which will open for public subscription on Tuesday, November 19.
The company's anchor investment round was completed on Monday, November 18, 2024 wherein it raised ₹3,960 crore.
Established in April 2022, the company is a fully-owned subsidiary of NTPC Limited, focused purely on the renewable energy sector and engaged in the construction of 31 renewable energy projects across seven states.
7 things to know about NTPC Green Energy IPO
1) NTPC Green Energy IPO size and constituents
The NTPC Green Energy IPO is a ₹10,000-crore book-building offer comprising only of a fresh issue of 92.59 crore shares without an offer-for-sale (OFS) component.
2) Price band
The price band of the IPO is between ₹102 and ₹108 per share.
3) Important dates
The NTPC IPO will be open for public subscription from November 19 to November 22, with IPO allotment status to be finalised on November 25.
Refunds to unsuccessful applicants will get initiated on November 26 while the successful applicants will receive shares in their Demat accounts on the same day.
The listing itself is scheduled for Wednesday, November 27.
4) Minimum investment
Retail investors have to invest into a minimum of 138 shares, which requires an investment of ₹ 14,904.
Meanwhile, small Non-Institutional Investors (sNII) have to apply for 14 lots or 1,932 shares at minimum, leading to an investment of ₹ 2,08,656.
For Big Non-Institutional Investors (bNII), the minimum application size is 68 lots or 9,384 shares, which requires an investment of ₹ 10,13,472.
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5) NTPC Green Energy IPO's Objectives
The company plans to use the IPO proceeds to invest in its wholly-owned subsidiary, NTPC Renewable Energy Limited (NREL), to repay or prepay, either in full or in part, certain outstanding borrowings, and the remaining funds for general corporate purposes.
6) Key Financials
NTPC Green Energy's total income rose by 1,094% in the financial year 2023-24, reaching ₹ 2,037.66 crore, compared to ₹ 170.63 crore in the previous year. Its net profit more than doubled to ₹ 344.72 crore, compared to ₹ 171.23 crore in 2022-23.
7) Who are the book-running lead managers and the registrar?
The book-running lead managers of the NTPC Green Energy IPO are IDBI Capital Market Services Limited, HDFC Bank Limited, IIFL Securities Ltd and Nuvama Wealth Management Limited.
Kfin Technologies Limited is the registrar of the issue.
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